If you entered a long from local oversold conditions, take at least part of the position off when the market reaches local overbought conditions.
The market does not have to start a new trend right away. Many moves are just technical bounces: sellers get squeezed, price returns closer to fair value, pressure resets, then the chart starts chopping again.
Where traders get caught
They enter well, see a green candle, then mentally rewrite the trade. Suddenly a local bounce becomes a “major trend reversal”. That is how a planned trade turns into a position with no exit.
Cleaner execution
Entered from oversold — know where your edge started. Reached local overbought — take something off. The rest can stay open only if structure supports it:
📍 price holds the level 📍 open interest is not expanding into dead price action 📍 funding is not overheating 📍 Market Median is not pushing into a risk zone
Partial profit-taking does not cap the trade. It removes pressure and lets you manage the remaining size with a clear head.
This is exactly why I watch Market Median in Crypto Resources: to see where the market was locally washed out, where it starts overheating, and whether a long still deserves room.
A long from oversold is a trade from imbalance.
When that imbalance is gone, part of the profit should already be booked.
